Human Development Index(HDI)

Question 1

What 3 areas does the human development index measure and how

Answer 1

Education- adult literacy, school enrolment
Health- life expectancy
Living standards - GDP/capita, PPP

Question 2

How is each measure in the HDI weighted

Answer 2

Equally

Question 3

Advantages of the HDI

Answer 3

Broad measure
Focuses on development outcomes
Allows progress to be measured over time

Question 4

Disadvantages of the HDI

Answer 4

Distribution of income/ inequality not measured
No weighted averages
No measures of freedom and choice
Other factors not measured (crime, corruption, negative externalities)

Question 5

Other indicators of development

Answer 5

Gender- related development index(GDI)
Human poverty index(HPI)

Question 6

Factors influencing growth and development

Answer 6

Primary product dependency
Harrod- Domar model
Foreign currency gap
Capital flight
Demographic factors
Debt
Access to credit and banking
Infrastructure
Education/ skills
Property rights
Non- economic factors

Question 7

Primary product dependency

Answer 7

Developing countries rely on primary products/ raw materials
Volatile prices makes long- term planning difficult
Fall in prices leads to fall in export incomes, funding for infrastructure and education falls
Not sustainable as resources are finite